) -- Reflecting the growing influence of Brazil, China and India on the global economy, the G-20 group of nations will replace the G-8 as the permanent council for international economic cooperation, according to several G-20 officials and the White House.

The G-8 will still meet on such things as national security issues that impact the most-developed economies, but the role of the board of directors for the global economy will be taken over by the larger G-20. That group includes the emerging economies of China, Brazil and India, as well as other industrialized nations.

"This decision brings to the table the countries needed to build a stronger, more balanced global economy, reform the financial system, and lift the lives of the poorest," a White House fact sheet said, the

Associated Press

reports, adding that President Barack Obama initiated the move.

Under a G-20 proposal, the world would reduce its reliance on U.S. consumers, according to the

Wall Street Journal

. The Chinese would boost domestic demand, the U.S. would trim its borrowing from overseas, and the Europeans would encourage investment, said some G-20 officials involved in the talks, the



The agreement is expected to be signed by G-20 leaders on Friday.

U.S. Treasury Secretary Timothy Geithner, meanwhile, said the G-20 had reached a consensus on the "basic outline" of a proposal to limit bankers' compensation by the end of this year, the


reports. Geithner said it would involve setting separate standards in each of the countries and would be overseen by the Financial Stability Board, an international group of central bankers and regulators.

-- Reported by Joseph Woelfel in New York


Follow TheStreet.com on


and become a fan on


Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.